The IRS released a new draft Form W-9 with an intended release date of October. The form includes a new line 3b which must be completed by flow-through entities that have direct or indirect foreign partners, owners, or beneficiaries.
This amendment is intended to help US partnerships identify when non-US partners are involved in a transaction so they can be reported on Schedule K-3. This update highlights the importance of tracking investment structures and investor information so funds can be compliant from investor onboarding through to reporting.
View the new draft IRS Form W-9, Form W-9 (Rev. October 2023) (irs.gov), on the IRS website.
Contact Optax to discover how our private market fund tax technology can enhance your existing operational processes using automation, AI, and best-in-class structure visualisation tools. We are also happy to advise on US tax form validation.
